To qualify as a 1031 exchange, the property being sold and the new replacement property must both be held for investment purposes or for productive use in a trade or a business. They must be "like-kind" properties.

The following types of real estate swaps are examples of a qualified exchange of "like-kind" property:

* An office in exchange for a shopping center

* A shopping center in exchange for land

* Land in exchange for an industrial building

* An apartment building in exchange for an industrial building

* A single-family rental in exchange for a tenants in common (TIC) property